DEPARTMENT OF STATE REVENUE
SUBJECT: Sales Tax Exemption for Research and Development Equipment
SUMMARY OF CHANGES
Apart from nonsubstantive, technical changes, this version of the bulletin has been changed to reflect that the current exemption from sales tax for "research and development equipment" expires after June 30, 2013. The bulletin also has been changed to define and reflect a new exemption for "research and development property" purchased after June 30, 2013.
For periods prior to July 1, 2013, definitions related to research and development equipment apply. For periods after June 30, 2013, definitions related to research and development property apply.
The exemptions for research and development equipment and research and development property apply only to equipment or property purchased for the purpose of research and development activities.
Items purchased after June 30, 2013 will be subject to the exemption available to research and development property. A retail transaction will be considered as having occurred after June 30, 2013, if delivery of the item is made to the purchaser after that date. However, a transaction shall be considered as having occurred before July 1, 2013, to the extent that the agreement of the parties to the transaction is entered into before July 1, 2013, and payment for the item purchased is made before July 1, 2013, regardless of whether delivery of the item occurs before July 1, 2013.
Michael J. Alley